Eircom revenue plunges by 9%

EIRCOM says the operating environment in Ireland remains “challenging” as revenues plunged 9% to €468 million in the three months to the end of September.

The company also reported broadband revenue rose 7% from a year earlier but mobile revenues fell 6% in the quarter.

The company said cost reduction and improved customer retention will remain “key objectives for the business”.

Earnings before interest, tax and depreciation fell by 1% during its first quarter to €168m. Reduced labour costs saw Eircom cut its operating costs by 11% during the quarter, to €300m, compared with the same quarter a year previous.

The group’s fixed-line revenues fell 9% to €364m as a result of lower voice volumes and higher discounts.

Eircom chief executive Paul Donovan said: “The operating environment in Ireland remains challenging from an economic, competitive and regulatory perspective. Within that context, the group has delivered a set of results which underline the commitment to continued strong cost control.”

The company’s mobile division, Meteor, reported revenues of €119m, down 6% on the same quarter in 2008 due to lower average revenue per user (ARPU).

However, Meteor gained 20,000 new customers during its first quarter. Its total mobile customer numbers stood at 1.046 million at the end of September, which was up 38,000 year-on-year.

ARPU dropped 8% over the year to €36.02, which Eircom said was largely due to changes in traffic mix and new call price plans.

Total mobile customers were 1,046,000 at 30 September, up 38,000 in the same time last year. Post-paid customers stood at 146,000, almost 14% of the total.

The company said it continues to support the process for the sale of Eircom Holdings to STT Communications, which is due to be complete on January 4, 2010.